VoIP, Inc. Shares Letter to Shareholders
In an interesting move, VoIP, Inc. has publicized an open letter to shareholders on their website, letting it all hang out. Detailing how the year has gone for them, what has happened since Tony Cataldo joined the company as Chairman and CEO, and their plans, particularly in a financial aspect, for the future, they left no stone unturned. They also announced that they are predicting a positive cash flow for the company during the upcoming last quarter of 2007. You can read the entire statement right here, but in the meantime, a brief excerpt:
Approximately one year ago when Tony Cataldo joined the Company, we underestimated the challenge ahead of us. We knew that VoIP was in a difficult position, but never expected that the debt the Company incurred would require such a difficult restructuring. Quite simply, the Company was pursuing the wrong lines of business, and had practically little to no operating cash. It could have easily chosen bankruptcy as an alternative, which would have allowed the Company to manage these difficulties in an orderly fashion. We believed then, as we do now, that the Company was not only viable, but its potential could be realized with strong and prudent direction. While it has taken us longer than expected, we were finally able to stabilize operations and invest in our network for growth. We wanted to share with you the steps we have taken to get to this point…
Despite progress operationally and in improving our capital structure, Wall Street has not yet recognized these improvements. Our stock, on a split-adjusted basis, is near its low for the year. Our market capitalization is much less than the replacement cost of our network. We believe that those shareholders who have stuck with us through the tough times will be rewarded, as we feel we are entering a period of high value creation for the Company. We thank you for your support and look forward to sharing future developments with you in the coming months.